Traub Weekly News Roundup // August 15, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Target begins curbside Starbucks service, Warby Parker expands retail footprint, and more. 

WORDS FOR THE WEEK

M&A and INVESTMENTS

• Tapestry Acquiring Capri in $8.5 Billion Deal WWD
  
• ESPN Enters Sports Gambling in $2 Billion Deal With Penn Entertainment NYT
• Pellicano Strikes €200M Investment Deal, Sets Expansion Plan BoF
• Dave Portnoy is buying back 100% of Barstool Sports from Penn Gaming Axios
• Molson Coors expands further into bourbon with Blue Run Spirits acquisition Food Dive
• Parade, the Buzzy DTC Intimates Brand, Is Sold to Ariela & Associates International WWD

INDUSTRY NEWS

CPG

Coffee chains are betting big on cold drinks as Gen Z turns its back on old-school coffees

Starbucks dominates the iced coffee market. But Tim Hortons wants in on this, too, and has been expanding its range of specialty cold coffees. Business Insider

Pet Care Companies Bank On Sustainability As Consumer Trends Shift

Following global patterns, a new sustainability trend is taking shape in the pet care industry. Forbes

Target Begins Nationwide Rollout of Drive Up with Starbucks, Offering Free Carside Delivery of Café Favorites

Nationwide retailer Target is encouraging more consumers to use the convenience of its curbside order pick-up service with the addition of a new perk: Starbucks coffee. TechCrunch

Heineken's big sports play for the light beer market

From Formula One to the US Open, it’s hoping to tie Heineken Silver to consumers’ memorable moments. Retail Brew

Kellogg pins growth in snacking unit on Pringles, Cheez-It ahead of split

The two brands, along with Eggo, Pop-Tarts and Rice Krispies, will be responsible for about half of the more than $13 billion in sales from the new company called Kellanova. Food Dive

US Inflation Cooling as Consumer Prices Rise Moderately Again

Moderate inflation, together with a cooling labour market, bolstered economists’ conviction that the US central bank will be able to engineer a “soft landing” for the economy after a year of hand-wringing about a recession. Reuters

Restaurants and Supermarkets Are Brawling Over Your Dollar

Kroger, Giant Eagle and other grocers expand prepared meals; Chipotle, Taco Bell and other restaurants aim to defend their turf. WSJ

RETAIL

Bye Bye Flagships? Tiny Stores Boast Big Eco-gains

While size and scale have long been a marker of success for stores, more and more forward-thinking retailers are making the environmental case for staying small. WWD

Amazon Cuts Dozens of House Brands as It Battles Costs, Regulators

Company’s cuts include all but three of its 30 clothing labels, such as Goodthreads and Lark & Ro. WSJ

Target Taps Rowing Blazers for Next Fall Collab

The preppy-inspired line of apparel, home and pet products will launch Sept. 23. WWD

Resale Sites Inch Closer to Profitability

The RealReal and ThredUp are both eyeing at least EBITDA breakeven by 2024. BoF

Custom art, air purifiers and TikTok: College-spending boom could booster retailers’ sales this fall

College students and their families are expected to spend a record amount this year as demand for electronics and dorm decor grows. CNBC

Warby Parker on track to open 40 stores in 2023 as it finds continued value in brick and mortar

The DTC eyewear brand opened 13 stores during the second quarter at a time when some digitally native companies are pulling back on physical retail. Retail Dive

That Cool New Bookstore? It’s a Barnes & Noble.

America’s biggest bookstore chain is being reinvented. To understand the strategy for its 596 stores, look at the most famous one. WSJ

Major retailers bring $14 billion in revenue to Black-owned brands

Nordstrom, Macy’s, Sephora, Gap & Ulta Beauty are among the 29 retailers and companies partnered with nonprofit organization Fifteen Percent Pledge. CNBC

‘You have to pay to play’: Retailers’ short-term Covid leases are running out

Many retailers signed short-term leases at the beginning of Covid that allowed them to keep their businesses up and running. Now, though, the terms are expiring, and some are finding themselves in hot water. Modern Retail

Outlet malls are booming as brands seek out new retail options

More retailers are opening up outlet stores to meet shoppers’ demands for deals. Modern Retail

Strong July Retail Sales Signal Healthy Back To School Season

Retail sales rose by 0.7% in July, beating expectations and indicating a strong start to the important back-to-school shopping season. Forbes

Forget Black Friday: The holiday shopping season starts now

The traditional holiday shopping season ended with COVID, which pushed more deals online and caused retailers to spread out demand. Axios

TECH

Amazon taps generative AI to enhance product reviews

Amazon announced this morning it will begin to leverage generative AI to help customers better understand what customers are saying about a product, without necessarily having to read through dozens of individual reviews. TechCrunch

Hollywood calls time on golden era of cheap streaming

Top studios turn screws on customers with price rises that rival expensive cable TV bundles. Financial Times

RESTAURANTS & HOSPITALITY

New DoorDash customers are turning to the app for grocery deliveries and flowers, not just restaurant meals

DoorDash's roots are in meal deliveries, but it also has more than 100,00 retail stores on its app, surpassing Instacart. Business Insider

A Table Outside? More Diners Say No Way

Restaurants say heat waves, smoke have hurt their outdoor dining business. WSJ

Six reasons fast food is on the rise

The restaurant industry was among the hardest hit during the pandemic. But the restaurant scene is bouncing back — especially fast-food chains. Washington Post

COMINGS & GOINGS

• Rite Aid CTO out as new chief marketer joins Retail Dive
• TikTok Replaces Top Shopping Executive With Retail Veterans The Information
• Wolverine Worldwide CEO Brendan Hoffman Suddenly Exits WWD
• Joerg Zobel has been appointed COO at Rosewood Hotel Group Hospitality Net
• Kraft Heinz appoints head of North American operations as CEO Food Dive
• PayPal announces senior Intuit exec Alex Chriss as new CEO TechCrunch
• Head of CBS News, Neeraj Khemlani, Stepping Away From His Role WSJ
• Harvey Nichols CEO to Step Down BoF
• David Limp, Amazon's Devices Chief to Exit WSJ

GOOD READS

• Latest Retail Trend: Men as C.E.O.s NYT